Jobless claims climb to 4-week high of 229,000, but layoffs still show little sign of accelerating

By Jeffry Bartash

New unemployment filings are historically low

The numbers: The number of Americans who applied for unemployment benefits last week rose to a four-week high of 229,000 - likely in part due to the end of the school year - but there was little sign of rising layoffs.

Economists polled by the Wall Street Journal had forecast new claims to total 219,000 in the seven days ending June 1, based on seasonally adjusted figures.

Initial jobless claims have hovered between 194,000 and 232,000 this year, a remarkably low level last achieved consistently in the 1960s.

Key details: New jobless claims fell in 31 of the 53 states and territories that report these figures to the federal government. Claims rose in 22 others.

Omitting seasonal adjustments, actual new claims fell slightly last week to 195,430. They were also below the key 200,000 line for the ninth time this year, a remarkably low level.

The number of people already collecting unemployment benefits in the U.S., meanwhile, edged up by 2,000 to 1.79 million, the government said.

These so-called continuing claims are roughly at the same level as they were before the pandemic in 2019.

Big picture: Businesses are not hiring as many workers, but they also aren't cutting many jobs. Sales are still pretty strong and good help is hard to find, giving firms little incentive to shrink staff.

As long as most adults are working, they are likely to keep spending at levels sufficient to keep the economy growing.

Looking ahead: "We still see the data as supporting the notion that people who lose a job are able to find a new one with relative ease," said U.S. economist Thomas Simons of Jefferies LLC. "Businesses have been extremely reticent to let go of workers that they struggled to find over the last 3 years."

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open mixed in Thursday trading.

-Jeffry Bartash

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06-06-24 0927ET

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